Swedish Government Offers
Plan to Create Jobs, Cut Taxes

Social Democrats, Trailing
In Polls, Propose Budget
That Will Boost Spending

By

Carlo Piovano Dow Jones Newswires

Updated Sept. 21, 2005 12:01 a.m. ET

STOCKHOLM -- Trailing in the polls, Sweden's Social Democratic government launched its re-election campaign with a 2006 budget that pours more money into job-creation programs and reduces taxes on lower- and middle-income workers.

The government's plan was quickly attacked as "profoundly irresponsible" by opposition critics and economists cautioned it is based on ambitious growth estimates. It also comes as other incumbent European governments are promising new spending and tax cuts in the face of voter...